Leading fashion retailer,
), continues with its history of reporting positive comparable
store sales (comps). The company recorded a 4.4% increase in comps
for the five weeks ended September 29, 2012.
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September Comps at Nordstrom's two business segments - Nordstrom
full-line and Nordstrom Rack - increased 4.0% and 6.9%,
respectively, compared with the year-ago period. Total retail sales
climbed 7.4% to $1.01 billion from $943 million reported for the
five-week period ended October 1, 2011.
On a quarter-to-date basis, the company reported an elevation of
11.1% in comps compared to the year-ago period, primarily
benefiting from the shift in timing of the company's Anniversary
Sale event. The company's business segments also posted solid
comps, including an 11.6% increase in Nordstrom full-line store
comps and a 7.0% increase in Nordstrom Rack store comps. Net sales
through the quarter rose 14.9% to $1.88 billion.
Year-to-date through September 29, 2012, Nordstrom's total
retail sales augmented 11.4% to $7.33 billion driven by a 7.5%
increase in comparable store sales. During the period, the
company's comparable store sales at Nordstrom full-line and
Nordstrom Rack segments augmented 7.9% and 7.2%, respectively.
One of Nordstrom's competitors,
), registered a 6% rise in comparable store sales for the month of
September, while net sales came in at $1.45 billion, up 7.4%
compared with the prior-year period.
Geared up for More Stores
During September, Nordstrom successfully executed its plan of
opening four new Nordstrom Rack stores in three different states.
As a result, the company opened up one store at Manchester
Highlands in Manchester, Missouri; one at Tysons Corner, Virginia;
and two stores in California located at the Carmel Mountain Plaza
in San Diego and Edinger Plaza in Huntington Beach. Additionally,
the company relocated its Nordstrom Rack store at the Mall at the
Source in Long Island, New York to the close by Gallery at Westbury
Further, on October 4, 2012, the company inaugurated two Nordstrom
Rack stores at Town & Country in Phoenix, Arizona and at Alamo
Quarry Market in San Antonio, Texas.
Looking further into October, the company is slated to come up with
one Nordstrom Rack store at Huntington Shopping Center in
Huntington, New York and relocate its Nordstrom Rack store in White
Plains, New York, to another floor at the same location.
Over the longer term, Nordstrom targets to open four full-line
stores in Canada beginning 2014, including one full-line store in
Jacksonville, Florida; and another at The Woodlands in Houston,
Texas in 2014. Further, the company plans to bring up three
Nordstrom Rack stores in Ann Arbor, Michigan; Columbus, Ohio; and
Milwaukee, Wisconsin beginning 2013.
As of October 4, 2012, Nordstrom operated 117 Nordstrom full-line
stores, 116 Nordstrom Rack, 2 Jeffrey boutiques, 1
treasure&bond store and 1 clearance store, thus taking the
total store count to 237.
Based in Seattle, Washington, Nordstrom Inc. offers high quality
apparel, shoes, cosmetics and accessories for men, women and kids.
The company offers both branded and private label merchandise, as
well as a private label card, two Nordstrom VISA credit cards and
debit cards for Nordstrom purchases.
Nordstrom maintains a Zacks #2 Rank, which translates into a
short-term Buy rating. Our long-term recommendation on the stock